How Ecommerce Order Tracking Works: Types, Benefits + Tips

In today’s ecommerce landscape, customers expect to stay informed, especially about orders they’ve already placed. A 2024 McKinsey survey reports that roughly half of respondents track the status of orders to ensure that a shipment is in transit and will get to them on time. 

Major retailers offer detailed order tracking experiences, but today’s tools make it just as accessible for small ecommerce businesses. With the right platform and shipping partners, even the smallest brands can provide clear, timely updates that meet customer expectations.

Learn how ecommerce order tracking works and how to implement it when it comes to your own company.

What is ecommerce order tracking?

Ecommerce order tracking involves monitoring the status of online orders, from the moment a customer makes a purchase to when the package reaches its final destination. 

After a customer places an order online, the ecommerce business works with shipping carriers or courier services to generate a unique tracking number—also known as a tracking ID or code—that customers can use to follow their order in transit. Customers can track orders by inputting these numbers into order tracking pages hosted on ecommerce or shipping carrier websites. 

Ecommerce merchants can also proactively communicate order tracking updates—like current status and estimated delivery dates—via push, SMS, or email notifications.

Types of order tracking systems

Ecommerce businesses typically choose from three main order tracking systems:

1. Automated order tracking systems. These systems use automation tools to generate tracking numbers after customers place orders and send updates at each stage of the order fulfillment process, saving time and reducing errors. For example, apps like ShipStation offer auto-tracking features with automatic delivery updates, while Shopify’s built-in order management and delivery system includes features like emails that are automatically sent to customers when an item has shipped or been delivered. 

2. Manual order tracking systems. Manual order tracking systems rely on individuals to create tracking numbers, send them to customers, and track every step of the order fulfillment process using spreadsheets or logbooks. Manual tracking requires the most legwork, but it’s workable for businesses with limited order volume. 

3. Hybrid order tracking systems. Hybrid systems combine automation tools and manual processes. This approach lets founders automate labor-intensive tasks while still adding a personal touch. For example, a business using this type of system could automatically generate tracking numbers, but choose to communicate updates to customers manually. 

Reasons to provide ecommerce order tracking

Providing ecommerce order tracking to your customers has several benefits for your business. Here are just a few worth considering:

• Better customer experience. Keeping customers informed about the status of their orders can prevent confusion, build trust, increase customer satisfaction, and earn repeat business as people see how efficiently and effectively you get their packages to them.

• Fewer support tickets. If customers can check tracking information themselves, it saves your customer support team time and lets them focus on solving more pressing problems like payment failures, account access issues, or difficulties navigating return processes.

• Real-time visibility into fulfillment. An order tracking system isn’t just for customers. It gives you real-time visibility into your order fulfillment process, helping you make data-driven decisions (e.g., adjusting routes or switching carriers) to optimize logistics and avoid bottlenecks. 

• Enhanced post-purchase marketing opportunities. Merchants can use ecommerce order tracking communications to promote their offerings and increase cross-selling opportunities with relevant product recommendations.

How ecommerce order tracking works

• Order confirmation and processing
• Picking and packing
• Shipping
• Delivery
• Reverse logistics

Understanding each stage of the ecommerce order tracking process helps you identify where customer anxiety peaks—and where proactive communication has the most impact. Order tracking touches five key stages of fulfillment:

1. Order confirmation and processing

After a customer places an order on your ecommerce website, they’ll receive a confirmation email with order details and estimated delivery times. This immediate acknowledgment reassures customers their order went through. Although you can include shipping carrier order tracking numbers in order confirmation emails, you’ll typically include them in a separate shipping confirmation email after the order’s ready for dispatch.

2. Picking and packing

Once you’ve processed and confirmed a customer order, pick out the correct items from the inventory in your fulfillment center and package them for shipping. At this stage, you either generate an order tracking number yourself and input it into your order management system or purchase a shipping label from a shipping carrier or courier service that includes an order tracking number. 

If you have an order management system with automation features, it’ll automatically send out a shipping confirmation email to customers with carrier details and the relevant number. If you don’t, you’ll need to send out updates as you receive them throughout the shipping process. The earlier customers receive their tracking number, the fewer “Where’s my order” inquiries you’ll field.

3. Shipping

Once the package is with a shipping carrier or courier service, shipment status updates for customers will include phrases like “Shipped” or “In transit.” Merchants and customers can check in throughout this period to see a package’s journey from the initial warehouse to the recipient’s front door. Merchants using an OMS can set up status notifications for themselves and for their customers using communication channels like email or SMS.

4. Delivery

When the shipment reaches a local facility for final delivery, customers may see statuses like “Out for delivery” or “Tendered to delivery service provider.” After delivery, the order tracking status confirms successful arrival or notes delivery issues such as “Attempted delivery.”

5. Reverse logistics

In cases of returns or exchanges, merchants send shipping labels to the customer for those returning shipments, often with new tracking numbers. Customers can then follow the package’s journey back to the nearest fulfillment center.

Tips for implementing ecommerce order tracking

• Choose a robust ecommerce platform
• Communicate with your customers
• Make checking on order status easy
• Create branded order status pages

Here are some best practices to consider for implementing an effective order tracking system within your own ecommerce operations:

Choose a robust ecommerce platform 

Find an ecommerce platform that allows you to manage orders from one central dashboard. For example, Shopify merchants can use the platform’s built-in features to facilitate the order tracking process. Using Shopify’s shipping software, you can purchase a shipping label from a carrier directly on the Shopify admin dashboard for a specific order and the order tracking number will automatically connect to that order. If you purchase your label outside of Shopify Shipping, you can add tracking numbers directly into your Shopify admin dashboard. 

Once a tracking number is connected to an order in the system, it will automatically send a shipping confirmation email with that number to the customer, as well as email updates for different stages, like when the order is out for delivery.

Shopify also lets customers track their orders with the Shop app’s digital shopping assistant. The app provides real-time updates, delivery push notifications, and live map tracking. If you choose this option, customers can install the Shop app directly from your ecommerce store’s order status page.

Communicate with your customers

Offer customers multiple ways to receive tracking updates, such as email, SMS notifications, in-app push messages, and chatbots on your website. Whenever possible, allow users to customize how they’ll receive their updates—or opt out completely if they prefer. By offering a selection of communication channel options, you can reach more customers with your order tracking updates and avoid unnecessary inquiries about order status.

Make checking on order status easy

Order tracking should never feel like detective work. The easiest way to improve the customer experience is to make tracking information impossible to miss and effortless to use. Start by placing tracking links front and center in post-purchase emails, order confirmation messages, and shipping notifications. 

On your website, ensure customers can find the same information in their account dashboard and order history page with just one click. Avoid forcing customers to copy and paste long tracking numbers into a carrier website. Instead, use clickable links or embedded tracking widgets that take shoppers directly to real-time updates. Clear placement and instant access translate into fewer frustrated customers and a smoother post-purchase experience.

Create branded order status pages

Develop order status pages that reflect your identity using brand assets like your logo, font, slogan, or color palette. Branded order status pages keep customers on your site instead of sending them to carrier websites—and give you another touchpoint for recognition and cross-selling.

On Shopify, you can customize the order status page that appears as the final stop of the checkout process. Merchants can use Shopify’s checkout editor tool to change the logo, fonts, colors, background, and overall design of their order status pages—with the option to include relevant product recommendations for cross-selling.